GDP Is a Poor Measure of Social Well-Being Because

question 168

Multiple Choice

GDP is a poor measure of social well-being because

• A)the value of leisure time is not counted in GDP
• B)revenue earned on U.S.exports is ignored
• C)each dollar of government spending is valued at less than one-half of private spending
• D)consumer spending is more important than business spending and should be considered more valuable
• E)it values products at their market prices but ignores services produced

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Definitions:

Book Value

The net value of a company's assets minus its liabilities, often used to assess its equity value.

Intangible Asset

An asset that is not physical in nature, such as patents, copyrights, trademarks, and goodwill.

Depreciation Expense

An accounting method of allocating the cost of a tangible asset over its useful life to represent how much of the asset's value has been used.

Estimated Useful Life

The expected period over which an asset is anticipated to be used by a business.